Running an NGO is a noble thing where you can support the less privileged section of the society. If you are someone who is willing to register your NGO (Non-Government Organisation), it becomes necessary to understand what are the types of NGOs running in India. Precisely, all NGO can be majorly divided into 3 parts as below:

  1. Trust;
  2. Society; and
  3. Section 8 Company.

While the first two; Trust and Society; are very traditional in nature that we all have heard of. If we talk about Section 8 Company, it is registered under the Companies Act, 2013 and it is a recent one whose predecessor was Section 25 Company that was registered under the Companies Act, 1956. The number of total sections under company law have decreased and that is the reason now Section 25 shifted to Section 8 under which MCA gives license to run a company for non-profit making business.

Registration of Section 8 Company in India

Any company registered under the Companies Act, 2013 or preceding relevant act and has in scope to sports activities, promote commerce, art, technological know-how, training, research, social welfare, religion, charity, protection of surroundings or this kind of other object and intends to use its income, if any, or different income in selling its objective, intends to limit the charge of any dividend to its contributors is referred to as section 8 companies.

To register a company as section 8, it is required to follow the due procedure under the Companies Act, 2013 after which at the time of company registration, the promoters also get Section 8 License Letter in addition to Certificate of Incorporation.

Licence under section 8 (1) of the Companies Act, 2013 Pursuant to rule 20 the Companies (Incorporation) Rules, 2014 is provided by the MCA. One can register a Section 8 company both as private company as well as public company. Note that Section 8 company is a legal procedure and it is always advisable to consult a Professional like Company Secretary who is expert in the Company Law Provisions and can help you with the process of incorporation of section 8 company without any drafting errors which may cost you heavily in the later period.

 

Procedure for registration of Section 8 Company in India

  1. Filing of Name Application of Section 8 company in SPICE PART A: The name of section 8 company shall consist of the words like Foundation, Forum, Association, Federation, Chambers, Confederation, Council, Electoral Trust, etc. At a time, we can file a maximum of two names in according to our priority. One resubmission is allowed where we can again file up to 2 names if first 2 are not available. Charges for SPICE Part A is Rs. 1000/- Name once reserved is valid for 20 days. We can also file for extension up to 40/60 days with additional payment to MCA.

 

  1. Getting digital signatures of first directors/shareholders: The subsequent step is to get Class III Digital Signatures of first subscribers and directors which is required for filing Incorporation Form SPICE PART B with the MCA.

 

  1. Drafting of Memorandum of Association and Articles of Association: These documents are the constitution of the section 8 company and defines the scope of its activities and bye-laws. AOA regulates the internal control of the company. MOA of segment 8 company should be in form INC-13 whilst there is no format prescribed for AOA for section 8 organization. MOA & AOA of the company will be signed by means of each subscriber who shall mention his name, address, description and occupation in the presence of at the least one witness who shall attest the signature.

 

  1. Drafting of other Documents as required by the company law: There are multiple others documents which are required to be drafted during the section 8 company incorporation and these shall be taken care by your Professional Firm who have Company Secretaries.

 

  1. Filing of SPICE PART B: All the required documents should be proper and complete in nature. It is recommended to match before filing of Form SPICE 32.

 

  1. Attachments of SPICE 32:

 

  1. Memorandum of Association;
  2. Articles of Association; (no unique format)
  3. Declaration in form INC-14 by using CS/CA/CWA in practice
  4. Declaration by each promoter making the application in Form INC-15;
  5. An estimate of the future annual earnings and expenditure of the organization for subsequent three years;
  6. Consent and declaration of first Directors in form DIR-2;
  7. KYC of the Promoters
  8. Evidence of registered office like sale deed/hire deed/hire agreement etc;
  9. Utility bill of registered office like power bill;
  10. NOC of owner if registered office is taken on hire/hire.

 

Note: Spice 33 and 34 e-MOA and e-AOA can’t be used for section 8 company incorporation. They are mandatorily required to draft MOA and AOA as pdf attachments to SPICE-32.

 

Once MCA is satisfied with the documents and information, they will issue Certification of Section 8 Company Incorporation along with PAN and TAN. Section 8 License Letter is also issued with immediate effect. If you are looking for Section 8 Company Registration in India, we at Compliance Calendar LLP have Professional Team who can help you out with step wise procedure with full transparency.

Let us make India a Land of Givers and support the mankind. Section 8 Company is the most sought NGO Registration in India and taking CSR is only possible if you register on MCA portal by filing CSR-1. CSR-2 Report is also required to be shared with the MCA. If you have any doubts, you are welcome to ask your questions by booking one-time free consultation at info@ccoffice.in or connect at 9988424211.